Islamabad: Amid soaring prices and slumping economy, the inflation rate in Pakistan has increased by 3.46 per cent reaching 28.3 per cent in July, ARY News reported citing the Pakistan Bureau of Statistics (PBS).

As the inflation in July crossed 28 per cent, the finance ministry predicted the rate to be between 25-27 per cent.

The price of potatoes increased by 8.16 per cent, fresh vegetables by 37.64 per cent, tomatoes increased by 33.45 per cent and fresh fruits by 17.90 per cent, ARY News reported.

Earlier on Tuesday, the Pakistan government jacked up the price of petrol by 19.95 Pakistani Rupees per litre for the next fortnightly review.

The announcements were made by Finance Minister Ishaq Dar in a press conference.

“Petrol price has been increased by 19.95 PKR per litre to 272.95 PKR, while high-speed diesel is being increased by 19.90 PKR to 273.40 PKR,” ARY News quoted Dar as saying.

The revised prices will come into effect immediately, he said, adding that hike in fuel prices was inevitable in line with the commitments made with the IMF on slapping petroleum development levy (PDL) to the rates.

The Pakistan Minister further said that the prices were increased after taking Prime Minister Shehbaz Sharif into consultation.

It is pertinent to mention here that the weekly inflation, measured by Sensitive Price Indicator (SPI), increased by 3.73 per cent on a year-on-year basis for the week ending on July 26, ARY News reported citing Pakistan Bureau of Statistics (PBS) official data.

Notably, Pakistan is battling a huge economic crisis, with staggering inflation and depleting Forex reserves.

Weeks before, IMF approved a USD 3 billion bailout to support Pakistan in avoiding a default on its debt repayments.

With sky-high inflation and foreign exchange reserves barely enough to cover one month of controlled imports, Pakistan has been facing its worst economic crisis in decades, which analysts say could have spiralled into a debt default in the absence of the IMF deal.